Cargo weighs down IAG in 2013

IAG Cargo, the amalgamation of the cargo divisions at British Airways and Iberia, experienced a 7-percent drop in volume between 2012 and 2013, seeing activity decline to 5,653 million cargo-ton kilometers last year.
In its full-year results, released Friday, the carrier said 2013's commercial revenue of 1.07 million euros ($1.45 billion) represented an 11.8-percent decrease from the previous year. Officials blamed the decrease, partially, on fluctuating exchange rates.
“Market conditions remain challenging due to the global expansion in air cargo capacity and weak demand. We continue to focus on improving operational performance across our business, delivering a first-rate customer service and controlling costs," IAG Cargo's chief executive officer, Steve Gunning, said in a statement. "In these conditions, we ensure the yields we achieve at least cover our marginal costs. These costs include the fuel burn associated with the cargo in the bellyholds of our aircraft.”
The airline as a whole saw a 3.1-percent increase in revenue for 2013, ending the year at 18.68 billion euros, and passenger revenue rose by 5.8 percent compared to 2012. The airline experienced a fourth-quarter profit of 113 million euros in 2013, compared to a loss of 40 million euros in the same period in 2012. After exceptional items, the group's operating profit stood at 527 million euros, after seeing a 613-million-euro loss in 2012. The airline group has a 2015 operating profit target of 1.8 billion euros, and officials expect to maintain progress toward that goal in 2014.